Cradley Group aims to make a fresh start and attack new markets following a slump in its 1999-2000 profitability.


The West Midlands print group saw its sales increase by 2% to 28.2m in the year to 30 June, but its pre-tax profits fell from 1.05m to 206,000.


The firm said the strong pound, overcapacity and price cutting by UK competitors had contributed to the slump, and described the first quarter of 2000, in particular, as "disastrous".


It plans to reorganise the business and reduce costs. Staff rationalisation and a change in shift structure form part of the plan at the 490-strong group, but further details were unavailable.


However, the firm aims to capitalise on the capabilities of its two new Komori webs. The five-colour System 38SII was described as "attracting a great deal of interest" due to its ability to produce a variety of products inline.


The group has also set up a new publishing services company, Britespot, and is attracting new print work from local businesses as a result.


Website development wing Psyche Solutions is expected to break even this year.


Joint managing director Chris Jordan said: "We have to do things for the longer-term, not just the next quarter or year. There's a lot more to it than just knocking sections out - we are adding value so publishers can sell that to their readers and advertisers. Servicing their total production needs is fundamental to what we're trying to achieve."


Story by Jo Francis